26 Mar Midstream Business: “The Interview: Getting A REIT Right”
Midstream Business “The Interview: Getting A REIT Right”
Energy investment manager Tortoise Capital Advisors in
2012 set apart its Tortoise Capital Resources Corp. unit as a new firm, CorEnergy Infrastructure Trust Inc. It charged CorEnergy with an unusual mission: Acquire midstream assets and hold them in a real estate investment trust (REIT)—an unusual corporate structure in a sector where most public firms are either MLPs or conventional corporations, and where private-equity-backed operations are common. A REIT owns but cannot operate assets, and CorEnergy’s assets are leased to upstream producers or midstream operators. CorEnergy’s CEO took a few moments to visit with Midstream Business to discuss why its concept has worked and why he feels midstream REITs have a bright future.